PC Connection's YTD sales top $1b
The company increased revenues and profits despite stagnation in small business and consumer sales
Driven by corporate buying, PC Connection Inc. sold some $543 million of computers, services, equipment and software last quarter, a 6 percent increase over last year, resulting in net income of $8.8 million or 33 cents a share, a nickel per share increase, the Merrimack-based Internet and mail-order company reported Monday.
That brings sales for the first half of the year to just over a billion dollars, 7 percent more than last year, resulting in a $14.3 million profit year to date, or 54 cents a share.
The company increased revenues and profits despite stagnation in small business and consumer sales, as well as level sales to state and local government and educational customers. Federal government sales actually went down by $4 million compared to last year.
But sales to the company's large-account segment increased 22.5 percent, to $197 million. In terms of product, notebook sales were up 12 percent in the quarter and software sales were up 11 percent. Networking products were up 5 percent, and desktop sales were relatively stagnant. The company kept selling general administrative expenses growth down to 4.5 percent, and it managed to increase its cash and equivalents to $63.4 million, more than a dozen times more than at the beginning of the year. Apparently, the company had been better at getting its customers to pay quicker, because its accounts receivable was down by more than $40 million. The company also wiped out its bank line of credit. All in all, stockholders equity was up to $287.7 million, more than a $14 million increase.